SJP charges customers £47 million in ongoing fees while closing property fund

In the United Kingdom, St James's Place (SJP), a prominent wealth management firm, announced the winding up of its SJP Property fund, which amounted to £1.84 billion in assets. This decision came after the fund was suspended in October 2023 amidst a surge of withdrawal requests from investors. The firm communicated that the process for returning investments to approximately 120,000 affected clients will be protracted, potentially taking an additional two years to fully execute. Investors expressed their frustration over the prospect of incurring ongoing fees during this liquidation phase, especially considering that the value of their investments has already diminished due to market conditions and fund restrictions. Clients originally invested in the SJP Property fund are understandably outraged by this ongoing financial commitment while they await the recovery of their capital. Many are questioning the ethical implications of charging fees in such a situation where the fund’s value has decreased significantly since withdrawals were initially suspended. The management of SJP is facing increasing scrutiny over its transparency and communication regarding the fund's status and the rationale behind this extended charging of fees as clients await the return of their investments. The unfolding events highlight the challenges faced by investment firms in managing funds effectively while balancing the expectations of investors and the realities of market operations. As the firm navigates this process, it must contend with both regulatory obligations and investor sentiment to maintain its reputation in the competitive wealth management sector.